Tinley Beverage : Q2 Interim Financial Statement

THE TINLEY BEVERAGE COMPANY INC.

Condensed Interim Consolidated Financial Statements

(Unaudited - Expressed in Canadian Dollars)

June 30, 2021 and 2020

The Tinley Beverage Company Inc.

Table of Contents

June 30, 2021

	Page
Consolidated Financial Statements
Condensed Interim Consolidated Statements of Financial Position	3
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss	4
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity	5
Condensed Interim Consolidated Statements of Cash Flows	6
Notes to Condensed Interim Consolidated Financial Statements	9-21

THE TINLEY BEVERAGE COMPANY INC.

Condensed Interim Consolidated Statements of Financial Position

As at June 30, 2021 and December 31, 2021

(Unaudited - Expressed in Canadian Dollars)

	As at	As at
	June 30,	December 31
	2021	2020
	$	$
Assets
Current Assets
Cash and cash equivalents	2,311,571	2,258,526
Accounts receivable (Note 4)	146,434	90,100
Inventories (Note 5)	890,320	785,896
Prepaid expenses	370,562	288,425
Total Current Assets	3,718,887	3,422,947
Non-Current Assets
Property and equipment (Note 6)	6,243,519	6,398,317
Right-of-use assets (Note 8)	1,141,237	1,478,192
Security deposits	131,637	135,227
Total Non-Current Assets	7,516,393	8,011,736
Total Assets	11,235,280	11,434,683
Liabilities
Current Liabilities
Accounts payable and accrued liabilities (Note 7)	1,226,558	933,180
Current portion of lease liabilities (Note 8)	717,273	686,211
Deferred revenue	141	56,980
Total Current Liabilities	1,943,972	1,676,371
Non-Current Liabilities
Lease liabilities (Note 8)	746,573	1,149,876
Total Non-Current Liabilities	746,573	1,149,876
Total Liabilities	2,690,545	2,826,247
Shareholders' Equity
Share capital (Note 9)	40,299,687	37,977,603
Reserve for share-based payments (Note 10)	6,483,431	5,151,049
Reserve for warrants (Note 11)	8,084,243	9,515,740
Contributed surplus	4,282,187	2,019,826
Accumulated other comprehensive loss	(561,802)	(395,627)
Accumulated deficit	(50,043,011)	(45,660,155)
Total Shareholders' Equity	8,544,735	8,608,436
Total Liabilities and Shareholders' Equity	11,235,280	11,434,683
Nature of operations (Note 1)
Going concern (Note 2(b))
Contingencies (Note 16)
Subsequent events (Note 17)
Approved on behalf of the Board of Directors
"Jeffrey Maser" (signed)	"Ted Zittell" (signed)
Director	Director

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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THE TINLEY BEVERAGE COMPANY INC.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three and six months ended June 30, 2021 and 2020

(Unaudited - Expressed in Canadian Dollars)

	Three months ended	Six months ended
		June 30,		June 30,
	2021	2020	2021	2020
	$	$	$	$
Sales	360,918	34,747	499,324	208,412
Cost of goods sold	(253,260)	(47,619)	(397,663)	(149,863)
Gross margin	107,658	(12,872)	101,661	58,549
Operating Expenses
General and administration (Note 14)	1,006,570	687,940	1,873,867	1,522,286
Share-based payments (Notes 10)	345,344	279,457	1,494,587	679,178
Depreciation on property and equipment (Note 6)	247,713	256,816	502.932	503,655
Depreciation on right-of-use assets (Note 8)	147,487	166,380	299,539	327,908
Sales and marketing	130,156	150,007	268,563	433,769
Foreign currency translation gain	(11,271)	(493,820)	(17,588)	(443,481)
Product development	39,663	79,778	62,619	81,178
	(1,905,662)	(1,126,558)	(4,484,519)	(3,104,493)
Net Loss before Other Income (Loss)	(1,798,004)	(1,139,430)	(4,382,858)	(3,045,944)
Other Income
Interest and other income	2	215	2	1,062
Fair market value changes to short-term
investments	-	27,980	-	(27,823)
Net Loss	(1,798,002)	(1,111,235)	(4,382,856)	(3,072,705)
Other Comprehensive Loss
Loss on translation of foreign operations	(61,663)	(846,060)	(166,175)	(108,418)
Total Comprehensive Loss	(1,859,665)	(1,957,295)	(4,549,031)	(3,181,123)
Weighted Average Number of Common Shares	122,593,999	107,681,641	119,686,324	107,681,641
Net Loss per Share
Basic	(0.015)	(0.018)	(0.038)	(0.029)
Diluted	(0.015)	(0.018)	(0.036)	(0.029)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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THE TINLEY BEVERAGE COMPANY INC.

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity For the six months ended June 30, 2021 and 2020

(Unaudited - Expressed in Canadian Dollars)

	Share Capital		Reserves
	Number of			Share-based		Contributed	Accumulated	Accumulated other
	shares	Amount		payments	Warrants	surplus	deficit	comprehensive loss	Total
	#	$	$	$	$	$	$	$
Balance, December 31, 2019	110,681,641	35,036,761	3,922,339	9,619,818	157,627	(37,970,185)	(212,810)	10,553,550
Issuance of shares and warrants via private placements (Note 9)	3,700,000	1,291,834	-	691,560	-	-	-	1,983,394
Share issue costs (Notes 9 and 11)	-	(184,031)	-	(79,515)	-	-	-	(263,546)
Share-based payments (Note 10)	-	-	679,178	-	-	-	-	679,178
Forfeiture of options (Note 10)	-	-	(42,806)	-	42,806	-	-	-
Expiry of warrants (Note 11)	-	-	-	(1,819,393)	1,819,393	-	-	-
Exchange loss on translation of foreign operations	-	-	-	-	-	-	(108,418)	(108,418)
Net loss for the period	-	-	-	-	-	(3,072,705)	-	(3,072,705)
Balance, June 30, 2020	114,381,641	36,144,564	4,558,711	8,412,470	2,019,826	(41,042,890)	(321,228)	9,771,453
Balance, December 31, 2020	121,877,266	37,977,603	5,151,049	9,515,740	2,019,826	(45,660,155)	(395,627)	8,608,436
Issuance of shares and warrants via private placements (Note 9)	9,446,971	2,586,805	-	750,179	-	-	-	3,336,984
Share issue costs (Notes 9 and 11)	-	(264,721)	-	(81,520)	-	-	-	(346,241)
Share-based payments (Note 10)	-	-	1,494,587	-	-	-	-	1,494,587
Forfeiture of options (Note 10)	-	-	(162,205)	-	162,205	-	-	-
Expiry of warrants (Note 11)	-	-	-	(2,100,156)	2,100,156	-	-	-
Exchange loss on translation of foreign operations	-	-	-	-	-	-	(166,176)	(166,176)
Net loss for the period	-	-	-	-	-	(4,382,856)	-	(4,382,856)
Balance, June 30, 2021	131,324,237	40,299,687	6,483,432	8,084,243	4,282,187	(50,043,011)	(561,803)	8,544,735

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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